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LEASES
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
LEASES LEASES
Eversource, including CL&P, NSTAR Electric and PSNH, has entered into lease agreements as a lessee for the use of land, office space, service centers, vehicles, information technology, and equipment. These lease agreements are classified as either finance or operating leases and the liability and right-of-use asset are recognized on the balance sheet at lease commencement.  Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term.

Eversource determines whether or not a contract contains a lease based on whether or not it provides Eversource with the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. Eversource has elected the practical expedient to not separate non-lease components from lease components and instead to account for both as a single lease component, with the exception of the information technology asset class where the lease and non-lease components are separated.

The provisions of Eversource, CL&P, NSTAR Electric and PSNH lease agreements contain renewal options. The renewal options range from one year to twenty years. The renewal period is included in the measurement of the lease liability if it is reasonably certain that Eversource will exercise these renewal options.

For leases entered into or modified after the January 1, 2019 implementation date, the discount rate utilized for classification and measurement purposes as of the inception date of the lease is based on each company's collateralized incremental interest rate to borrow over a comparable term for an individual lease because the rate implicit in the lease is not determinable.

CL&P and PSNH entered into certain contracts for the purchase of energy that qualify as leases.  These contracts do not have minimum lease payments and therefore are not recognized as a lease liability on the balance sheet and are not reflected in the future minimum lease payments table below.  Expense related to these contracts is included as variable lease cost in the table below. The expense and long-term obligation for these contracts are also included in Note 13B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the financial statements.  

The components of lease cost, prior to amounts capitalized, are as follows:
For the Years Ended December 31,
20202019
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Financing Lease Cost:
Amortization of Right-of-use-Assets$2.6 $0.7 $0.2 $0.1 $1.7 $0.7 $0.2 $0.1 
Interest on Lease Liabilities1.4 0.3 0.6 — 1.2 0.6 0.6 — 
Total Finance Lease Cost4.0 1.0 0.8 0.1 2.9 1.3 0.8 0.1 
Operating Lease Cost11.1 0.6 2.1 0.1 11.7 0.5 3.4 0.1 
Variable Lease Cost57.8 12.2 — 45.6 60.5 13.3 — 47.2 
Total Lease Cost$72.9 $13.8 $2.9 $45.8 $75.1 $15.1 $4.2 $47.4 

Operating lease rental payments charged to expense in 2018 (which exclude CL&P's and PSNH's energy purchase contracts) were as follows:
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNH
2018$10.8 $10.9 $11.8 $2.5 

Operating lease cost, net of the capitalized portion, is included in Operations and Maintenance (or Purchased Power, Fuel and Transmission expense for transmission segment leases) on the statements of income. Amortization of finance lease assets is included in Depreciation on the statements of income. Interest expense on finance leases is included in Interest Expense on the statements of income.
Supplemental balance sheet information related to leases is as follows:
As of December 31, 2020
(Millions of Dollars)Balance Sheet ClassificationEversourceCL&PNSTAR ElectricPSNH
Operating Leases:
Operating Lease Right-of-use-Assets, NetOther Long-Term Assets$55.2 $0.3 $23.6 $0.3 
Operating Lease Liabilities
Operating Lease Liabilities - Current PortionOther Current Liabilities$9.5 $0.2 $0.7 $— 
Operating Lease Liabilities - Long-TermOther Long-Term Liabilities45.7 0.1 22.9 0.3 
Total Operating Lease Liabilities$55.2 $0.3 $23.6 $0.3 
Finance Leases:
Finance Lease Right-of-use-Assets, NetProperty, Plant and Equipment, Net$60.5 $0.7 $3.5 $0.8 
Finance Lease Liabilities
Finance Lease Liabilities - Current PortionOther Current Liabilities$5.0 $1.4 $— $0.1 
Finance Lease Liabilities - Long-TermOther Long-Term Liabilities57.6 — 4.8 0.7 
Total Finance Lease Liabilities$62.6 $1.4 $4.8 $0.8 
As of December 31, 2019
(Millions of Dollars)Balance Sheet ClassificationEversourceCL&PNSTAR ElectricPSNH
Operating Leases:
Operating Lease Right-of-use-Assets, NetOther Long-Term Assets$49.9 $0.7 $24.2 $0.4 
Operating Lease Liabilities
Operating Lease Liabilities - Current PortionOther Current Liabilities$8.6 $0.5 $0.7 $0.1 
Operating Lease Liabilities - Long-TermOther Long-Term Liabilities41.3 0.2 23.5 0.3 
Total Operating Lease Liabilities$49.9 $0.7 $24.2 $0.4 
Finance Leases:
Finance Lease Right-of-use-Assets, NetProperty, Plant and Equipment, Net$8.2 $1.9 $3.3 $0.9 
Finance Lease Liabilities
Finance Lease Liabilities - Current PortionOther Current Liabilities$2.4 $1.6 $— $0.1 
Finance Lease Liabilities - Long-TermOther Long-Term Liabilities8.1 1.4 4.4 0.8 
Total Finance Lease Liabilities$10.5 $3.0 $4.4 $0.9 

The finance lease payments that NSTAR Electric will make over the next twelve months are entirely interest-related, due to escalating payments. As such, none of the finance lease payments over the next twelve months will reduce the finance lease liability.

Other information related to leases is as follows (in millions of dollars, unless otherwise noted):
As of December 31,
20202019
EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Weighted-Average Remaining Lease Term (Years):
Operating Leases103198122209
Finance Leases171218122229
Weighted-Average Discount Rate (Percentage):
Operating Leases4.0 %2.4 %4.1 %3.7 %3.9 %2.5 %4.1 %3.7 %
Finance Leases2.9 %10.5 %2.9 %3.5 %4.0 %10.5 %2.9 %3.5 %
EversourceCL&PNSTAR ElectricPSNH
For the Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases$10.9 $0.6 $1.8 $0.1 
Operating Cash Flows from Finance Leases1.7 0.3 0.6 — 
Financing Cash Flows from Finance Leases2.8 1.6 — 0.1 
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities0.6 0.1 0.2 — 
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities0.7 — 0.3 — 
Eversource also acquired $14.7 million of right-of-use assets in exchange for the assumption of new operating lease liabilities and $54.2 million of right-of-use assets in exchange for the assumption of new finance lease liabilities as a result of the CMA asset acquisition.

EversourceCL&PNSTAR ElectricPSNH
For the Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases$11.4 $0.4 $1.6 $0.1 
Operating Cash Flows from Finance Leases1.2 0.6 0.6 — 
Financing Cash Flows from Finance Leases2.6 1.4 — 0.1 
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities2.9 1.0 0.1 0.2 
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities2.0 — — — 

Future minimum lease payments, excluding variable costs, under long-term leases, as of December 31, 2020 are as follows:
Operating LeasesFinance Leases

(Millions of Dollars)
EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Year Ending December 31,
2021$11.4 $0.2 $1.6 $0.1 $7.2 $1.5 $0.6 $0.1 
20229.0 0.1 1.6 0.1 5.7 — 0.6 0.1 
20236.4 — 1.6 0.1 4.9 — 0.6 0.1 
20244.5 — 1.7 — 4.8 — 0.7 0.1 
20253.4 — 1.7 — 4.7 — 0.7 0.1 
Thereafter36.2 — 27.0 0.1 60.7 — 13.0 0.4 
Future lease payments70.9 0.3 35.2 0.4 88.0 1.5 16.2 0.9 
Less amount representing interest15.7 — 11.6 0.1 25.4 0.1 11.4 0.1 
Present value of future minimum lease payments$55.2 $0.3 $23.6 $0.3 $62.6 $1.4 $4.8 $0.8 
LEASES LEASES
Eversource, including CL&P, NSTAR Electric and PSNH, has entered into lease agreements as a lessee for the use of land, office space, service centers, vehicles, information technology, and equipment. These lease agreements are classified as either finance or operating leases and the liability and right-of-use asset are recognized on the balance sheet at lease commencement.  Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term.

Eversource determines whether or not a contract contains a lease based on whether or not it provides Eversource with the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. Eversource has elected the practical expedient to not separate non-lease components from lease components and instead to account for both as a single lease component, with the exception of the information technology asset class where the lease and non-lease components are separated.

The provisions of Eversource, CL&P, NSTAR Electric and PSNH lease agreements contain renewal options. The renewal options range from one year to twenty years. The renewal period is included in the measurement of the lease liability if it is reasonably certain that Eversource will exercise these renewal options.

For leases entered into or modified after the January 1, 2019 implementation date, the discount rate utilized for classification and measurement purposes as of the inception date of the lease is based on each company's collateralized incremental interest rate to borrow over a comparable term for an individual lease because the rate implicit in the lease is not determinable.

CL&P and PSNH entered into certain contracts for the purchase of energy that qualify as leases.  These contracts do not have minimum lease payments and therefore are not recognized as a lease liability on the balance sheet and are not reflected in the future minimum lease payments table below.  Expense related to these contracts is included as variable lease cost in the table below. The expense and long-term obligation for these contracts are also included in Note 13B, "Commitments and Contingencies - Long-Term Contractual Arrangements," to the financial statements.  

The components of lease cost, prior to amounts capitalized, are as follows:
For the Years Ended December 31,
20202019
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Financing Lease Cost:
Amortization of Right-of-use-Assets$2.6 $0.7 $0.2 $0.1 $1.7 $0.7 $0.2 $0.1 
Interest on Lease Liabilities1.4 0.3 0.6 — 1.2 0.6 0.6 — 
Total Finance Lease Cost4.0 1.0 0.8 0.1 2.9 1.3 0.8 0.1 
Operating Lease Cost11.1 0.6 2.1 0.1 11.7 0.5 3.4 0.1 
Variable Lease Cost57.8 12.2 — 45.6 60.5 13.3 — 47.2 
Total Lease Cost$72.9 $13.8 $2.9 $45.8 $75.1 $15.1 $4.2 $47.4 

Operating lease rental payments charged to expense in 2018 (which exclude CL&P's and PSNH's energy purchase contracts) were as follows:
(Millions of Dollars)EversourceCL&PNSTAR ElectricPSNH
2018$10.8 $10.9 $11.8 $2.5 

Operating lease cost, net of the capitalized portion, is included in Operations and Maintenance (or Purchased Power, Fuel and Transmission expense for transmission segment leases) on the statements of income. Amortization of finance lease assets is included in Depreciation on the statements of income. Interest expense on finance leases is included in Interest Expense on the statements of income.
Supplemental balance sheet information related to leases is as follows:
As of December 31, 2020
(Millions of Dollars)Balance Sheet ClassificationEversourceCL&PNSTAR ElectricPSNH
Operating Leases:
Operating Lease Right-of-use-Assets, NetOther Long-Term Assets$55.2 $0.3 $23.6 $0.3 
Operating Lease Liabilities
Operating Lease Liabilities - Current PortionOther Current Liabilities$9.5 $0.2 $0.7 $— 
Operating Lease Liabilities - Long-TermOther Long-Term Liabilities45.7 0.1 22.9 0.3 
Total Operating Lease Liabilities$55.2 $0.3 $23.6 $0.3 
Finance Leases:
Finance Lease Right-of-use-Assets, NetProperty, Plant and Equipment, Net$60.5 $0.7 $3.5 $0.8 
Finance Lease Liabilities
Finance Lease Liabilities - Current PortionOther Current Liabilities$5.0 $1.4 $— $0.1 
Finance Lease Liabilities - Long-TermOther Long-Term Liabilities57.6 — 4.8 0.7 
Total Finance Lease Liabilities$62.6 $1.4 $4.8 $0.8 
As of December 31, 2019
(Millions of Dollars)Balance Sheet ClassificationEversourceCL&PNSTAR ElectricPSNH
Operating Leases:
Operating Lease Right-of-use-Assets, NetOther Long-Term Assets$49.9 $0.7 $24.2 $0.4 
Operating Lease Liabilities
Operating Lease Liabilities - Current PortionOther Current Liabilities$8.6 $0.5 $0.7 $0.1 
Operating Lease Liabilities - Long-TermOther Long-Term Liabilities41.3 0.2 23.5 0.3 
Total Operating Lease Liabilities$49.9 $0.7 $24.2 $0.4 
Finance Leases:
Finance Lease Right-of-use-Assets, NetProperty, Plant and Equipment, Net$8.2 $1.9 $3.3 $0.9 
Finance Lease Liabilities
Finance Lease Liabilities - Current PortionOther Current Liabilities$2.4 $1.6 $— $0.1 
Finance Lease Liabilities - Long-TermOther Long-Term Liabilities8.1 1.4 4.4 0.8 
Total Finance Lease Liabilities$10.5 $3.0 $4.4 $0.9 

The finance lease payments that NSTAR Electric will make over the next twelve months are entirely interest-related, due to escalating payments. As such, none of the finance lease payments over the next twelve months will reduce the finance lease liability.

Other information related to leases is as follows (in millions of dollars, unless otherwise noted):
As of December 31,
20202019
EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Weighted-Average Remaining Lease Term (Years):
Operating Leases103198122209
Finance Leases171218122229
Weighted-Average Discount Rate (Percentage):
Operating Leases4.0 %2.4 %4.1 %3.7 %3.9 %2.5 %4.1 %3.7 %
Finance Leases2.9 %10.5 %2.9 %3.5 %4.0 %10.5 %2.9 %3.5 %
EversourceCL&PNSTAR ElectricPSNH
For the Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases$10.9 $0.6 $1.8 $0.1 
Operating Cash Flows from Finance Leases1.7 0.3 0.6 — 
Financing Cash Flows from Finance Leases2.8 1.6 — 0.1 
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities0.6 0.1 0.2 — 
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities0.7 — 0.3 — 
Eversource also acquired $14.7 million of right-of-use assets in exchange for the assumption of new operating lease liabilities and $54.2 million of right-of-use assets in exchange for the assumption of new finance lease liabilities as a result of the CMA asset acquisition.

EversourceCL&PNSTAR ElectricPSNH
For the Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flows from Operating Leases$11.4 $0.4 $1.6 $0.1 
Operating Cash Flows from Finance Leases1.2 0.6 0.6 — 
Financing Cash Flows from Finance Leases2.6 1.4 — 0.1 
Supplemental Non-Cash Information on Lease Liabilities:
Right-of-use-Assets Obtained in Exchange for New Operating Lease Liabilities2.9 1.0 0.1 0.2 
Right-of-use-Assets Obtained in Exchange for New Finance Lease Liabilities2.0 — — — 

Future minimum lease payments, excluding variable costs, under long-term leases, as of December 31, 2020 are as follows:
Operating LeasesFinance Leases

(Millions of Dollars)
EversourceCL&PNSTAR ElectricPSNHEversourceCL&PNSTAR ElectricPSNH
Year Ending December 31,
2021$11.4 $0.2 $1.6 $0.1 $7.2 $1.5 $0.6 $0.1 
20229.0 0.1 1.6 0.1 5.7 — 0.6 0.1 
20236.4 — 1.6 0.1 4.9 — 0.6 0.1 
20244.5 — 1.7 — 4.8 — 0.7 0.1 
20253.4 — 1.7 — 4.7 — 0.7 0.1 
Thereafter36.2 — 27.0 0.1 60.7 — 13.0 0.4 
Future lease payments70.9 0.3 35.2 0.4 88.0 1.5 16.2 0.9 
Less amount representing interest15.7 — 11.6 0.1 25.4 0.1 11.4 0.1 
Present value of future minimum lease payments$55.2 $0.3 $23.6 $0.3 $62.6 $1.4 $4.8 $0.8